Terms Flashcards
Co-insurance
Coinsurance is the amount, generally expressed as a fixed percentage, an insured must pay toward a covered claim after the deductible is satisfied.
First loss payee
loss payee is a person or organization listed on an insurance policy’s declarations page that is entitled to receive claim payments before the policy owner due to a financial interest in the insured property.
Additional insured
An additional insured extends liability insurance coverage beyond the named insured to include other individuals or groups
Contract certainty
Contract certainty is achieved by the complete and final agreement of all terms (including signed lines) between the insured and insurers before inception.
Condition of average
the insurance term used when calculating a payout against a claim where the policy undervalues the sum insured
Indemnity to principle
The Indemnity to Principal clause protects the principal (usually the end customer) or the principal contractor by outlining that if a claim is paid, the beneficiary of the policy will not necessarily be the policyholder, but instead the third party who has suffered the damage or injury.
Excess
the amount you have to pay towards the overall cost of an insurance claim.
Material fact
A fact regarded as likely to affect the assembly or acceptance of a risk
Hold harmless agreement
the company that hires you or your firm cannot be held responsible for any injuries, losses or damages that may be caused to you or your company.
Reinsurance
Insurance for insurance companies
an arrangement whereby an insurer transfers all or part of a risk to another insurer to provide protection against the risk of the first insurance.
Rights of recourse
Rights of recourse is when one party enforces another party to accept its legal liabilities and responsibilities in a contract or something similar. It is the right to have recourse to the responsible party.
Subject matter
The specific object or interest that is being insured. This can be tangible or intangible assets
Torte
The at fault party can be held responsible for their damages or injuries caused
Contract statute
A legally binding document enacted by government
Insurance
It provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.
